20 Feb 2023 07:00
20 February 2023
Rambler Provides an Update on its Gold Stream Repurchase Agreement
London, England - Newfoundland and Labrador, Canada - Rambler Metals and Mining plc (AIM: RMM) ("Rambler" or the "Company"), a copper and gold producer, explorer, and developer, announces an update regarding its gold streaming repurchase agreement with Sandstorm Gold Ltd. ("Sandstorm") (the "Agreement"), in relation to production from its 100% owned Ming Mine, located in Newfoundland, Canada.
As noted in the Company's announcements of 17 March 2022 and 4 April 2022, the Company entered into a gold streaming repurchase agreement with Sandstorm, pursuant to which the consideration for the repurchase was US$7m less payable gold delivered by the Company since 1 October 2021 and 1,150 oz of gold to be delivered over the 18 months following the closing of the Agreement. Rambler has delivered 192 ounces of gold pursuant to the Agreement, leaving 958 ounces of gold remaining to be delivered to complete the terms of the Agreement.
No sale and delivery of refined gold to Sandstorm has occurred for the last seven months, being August 2022 to February 2023 inclusive, totalling 448 ounces of refined gold, and therefore an event of default has occurred, as defined in the Agreement.
Pursuant to the existing Agreement, Rambler has 10 days, from 16 February 2023, to either deliver 958 ounces of gold or make a cash payment to Sandstorm of approximately CND 2.36 million. Sandstorm and Rambler intend to enter discussions regarding a solution to the default.
At this stage there can be no guarantee that Sandstorm will agree to defer or reschedule the sale and delivery of gold pursuant to the Agreement, or the terms on which any deferral will be agreed. Accordingly, the Company's financial position remains uncertain.
In addition, Rambler remains in discussions with several groups as the Company seeks to restructure its finances. Further announcements will be made as appropriate.
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ('MAR') which has been incorporated into UK law by the European Union (Withdrawal) Act 2018. Upon the publication of this announcement via Regulatory Information Service ('RIS'), this inside information is now considered to be in the public domain.
ABOUT RAMBLER METALS AND MINING
Rambler is a mining and development company that in November 2012 brought its first mine into commercial production. Rambler has a 100 per cent ownership in the Ming Copper-Gold Mine, a fully operational base and precious metals processing facility and year-round bulk storage and shipping facility; all located on the Baie Verte peninsula, Newfoundland and Labrador, Canada.
The Company has established a production profile to meet current mill capacity of 1,350 metric tonnes per day with a target grade of 2% Cu and is evaluating growth opportunities from that base.
Along with the Ming Mine, Rambler also owns 100 per cent of the former producing Little Deer Complex.
Rambler is listed in London under AIM:RMM.
For further information, please contact:
Toby Bradbury President and CEO Rambler Metals & Mining Plc Tel No: +1 (709) 800 1929 Fax No: +1 (709) 800 1921 | Celeste Van Tonder CFO Rambler Metals & Mining Plc Tel No: +1 (709) 800 1929 Fax No: +1 (709) 800 1921 | Tim Sanford. P. Eng. VP & Corporate Secretary Rambler Metals & Mining Plc Tel No: +1 (709) 532 5736 Fax No: +1 (709) 800 1921 |
Nominated Advisor (NOMAD) |
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Ewan Leggat, Kasia Brzozowska SP Angel Corporate Finance LLP Tel No: +44 (0) 20 3470 0470 | ||
Website: www.ramblermines.com
Caution Regarding Forward Looking Statements:
Certain information included in this press release, including information relating to future financial or operating performance and other statements that express the expectations of management or estimates of future performance constitute "forward-looking statements". Such forward-looking statements include, without limitation, statements regarding copper, gold and silver forecasts, the financial strength of the Company, estimates regarding timing of future development and production and statements concerning possible expansion opportunities for the Company. Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief are based on assumptions made in good faith and believed to have a reasonable basis. Such assumptions include, without limitation, the price of and anticipated costs of recovery of, copper concentrate, gold and silver, the presence of and continuity of such minerals at modeled grades and values, the capacities of various machinery and equipment, the availability of personnel, machinery and equipment at estimated prices, mineral recovery rates, and others. However, forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Such risks include, but are not limited to, interpretation and implications of drilling and geophysical results; estimates regarding timing of future capital expenditures and costs towards profitable commercial operations. Other factors that could cause actual results, developments or events to differ materially from those anticipated include, among others, increases/decreases in production; volatility in metals prices and demand; currency fluctuations; cash operating margins; cash operating cost per pound sold; costs per ton of ore; variances in ore grade or recovery rates from those assumed in mining plans; reserves and/or resources; the ability to successfully integrate acquired assets; operational risks inherent in mining or development activities and legislative factors relating to prices, taxes, royalties, land use, title and permits, importing and exporting of minerals and environmental protection. Accordingly, undue reliance should not be placed on forward-looking statements and the forward-looking statements contained in this press release are expressly qualified in their entirety by this cautionary statement. The forward-looking statements contained herein are made as at the date hereof and the Company does not undertake any obligation to update publicly or revise any such forward-looking statements or any forward-looking statements contained in any other documents whether as a result of new information, future events or otherwise, except as required under applicable security law.